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The management of Consumers Mfg. would like to purchase a specialized production machine for $222,000. The machine is expected to last three years, with a
The management of Consumers Mfg. would like to purchase a specialized production machine for $222,000. The machine is expected to last three years, with a salvage value of $5,000. Annual maintenance costs will total $30,000, and annual labor and material savings are predicted to be $140,000. The company's required rate of return in 15%. Find the NPV of this investment.
1. $32,442
2. $6,404
3. $11,564
4. $28,210
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